SRI. ARAVIND v. CHAVAN
Case Details
- 1 - NC: 2025:KHC:13386 WP No. 3345 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.3345 OF 2025 (T-RES) BETWEEN: VASEEM PASHA S/O LATE ABDUL REHMAN, AGED 58 YEARS, PROPRIETOR M/S VASEEM ENTERPRISES, REGISTERED UNDER GST ACT, SMITHY BLOCK, 1/2, SLAUGHTER HOUSE ROAD, BANGALORE – 560 002. (BY SRI. K M SHIVAYOGISWAMY, ADVOCATE) AND: 1. UNION OF INDIA DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, REPRESENTED BY ITS FINANCE SECRETARY, NORTH BLOCK, NEW DELHI- 110 00. …PETITIONER 2. SUPERINTENDENT OF CENTRAL TAX, RANGE-ESD2, SOUTH DIVISION-02, 1ST FLOOR, BMTC BUILDING, BANASHANKARI, BENGALURU- 560 070
Legal Reasoning
(BY SRI. M.N.KUMAR, CGC & SRI.S.B. TOTAD, CGC FOR R-1; SRI. ARAVIND V. CHAVAN, ADV. FOR R2) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE Digitally signed by CHANDANA B M Location: High Court of Karnataka - 2 - NC: 2025:KHC:13386 WP No. 3345 of 2025
Decision
IN ORIGINAL BEARING ORDER SL.NO.10/2024-25/ ORDER GST/SOR/SUPDT-ESD2/786/24/DIN-2024045700000000A79A DATED 05.04.2024 PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-G, IN RELATION TO THE FINANCIAL YEAR 2018-19, IN SO FOR AS THE PETITIONER IS CONCERNED, AS THE SAME IS ILLEGAL, WITHOUT AUTHORITY OF LAW LACK OF JURISDICTION AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner seeks the following reliefs:- "(a) Issue writ of certiorari or Writ in the nature of certiorari quashing the Order in Original bearing Order Sl.No.10/2024-25/GST/SoR/SUPDT-ESD2/786/24/ DIN- 2024045700000000 A79A dated 05.04.2024 passed by the 2nd respondent vide Annexure-G, in relation to the financial year 2018-19, in so far as the petitioner is concerned, as the same is illegal without authority of law, lack of jurisdiction. b) Issue writ of mandamus or Writ in the nature of mandamus, directing the 2nd respondent to refund the input tax credit amounts of Rs.4,56,993/- paid by the petitioner vide DRC-03 dated: 06.11.2023 and dated: 05.12.2023 along with interest as per impugned order in Original bearing Order Sl.No.10/2024-25/GST/SoR/SUPDT- ESD2/786/24/DIN-2024045700000000 dated 05.04.2024 passed by the 2nd respondent vide Annexure- A70A G, in relation to the financial year 2018-19, - 3 - NC: 2025:KHC:13386 WP No. 3345 of 2025 c) Issue such other writ or orders as deemed fit in the circumstances of the case in the interest of justice and equity.” 2. Heard learned counsel for the petitioner and learned CGC for respondent No.1 and learned counsel for respondent No.2 and perused the material on record. 3. A perusal of the material on record will indicate that the issue in controversy involved in the present petition is directly and squarely covered by the judgment of this Court in the case of M/s.Sadhana Enviro Engineering Services vs. Joint Commissioner of Central Tax & others – W.P.No.6138/2020 dated 03.09.2024, which reads as under:- 2. Heard learned Senior counsel for the petitioner and learned counsel for the respondents – revenue and learned AGA for the State and perused the material on record. 3. Learned Senior counsel for the petitioner submitted that though several contentions have been urged by the petitioner who has also sought for various reliefs, during the pendency of the present petition, a new provision i.e., Section 16(5) has been inserted by “The Finance (No.2) Act, 2024” vide Central Act 15 of 2024, in which, Clause No.118 provides for condonation of delay in - 4 - NC: 2025:KHC:13386 WP No. 3345 of 2025 availment of credit and extended the time limit by providing that for supplies pertaining to the financial years 2017-18, 2018-19, 2019-20 and 2020-21, the petitioner would be entitled to avail / claim credit in any return filed up to 30.11.2021. It is submitted that the said “The Finance (No.2) Act, 2024” received presidential asset on 16.08.2024 and would be notified shortly. It was further submitted that in cases where assessees had paid amounts as pre-deposit under court orders or in appeal proceedings or amounts recovered by the respondents – revenue are paid by the assessees pursuant to recovery proceedings, the embargo contained in Clause 150 of the said “The Finance (No.2) Act, 2024” would not apply and was not applicable to the assessees, who would not be covered by the said embargo and consequently, they would be entitled to refund of the said amounts. It is therefore submitted that without going into the various other contentions urged by the petitioner and reliefs sought for by it and without expressing any opinion on the same, the present petition may be disposed of with a direction to consider and implement and give effect to the amended provisions contained in Section 118 of “The Finance (No.2) Act, 2024” relating to insertion of Section 16(5) to the CGST Act / KGST Act within a stipulated time frame. 4. Per contra, learned counsel for the respondents – revenue and learned AGA for the respondents – State jointly and fairly submit that it is true that Section 16(5) was inserted vide Clause 118 of “The Finance (No.2) Act, 2024” and that the same was applicable to the petitioner and - 5 - NC: 2025:KHC:13386 WP No. 3345 of 2025 other assessees and the time for filing returns and availing input tax credit would stand extended upto 30.11.2021. It is also submitted that since presidential asset has already been received to “The Finance (No.2) Act, 2024”, necessary Notification would be issued shortly and as such, the present petition may be disposed of accordingly. 5. As rightly contended by the learned Senior counsel for the petitioner as well as learned counsel for the respondents – revenue and learned AGA for the State, Section 16(5) was inserted into the CGST Act vide Clause 118 of the “The Finance (No.2) Act, 2024”, which reads as under:- “118. In Section 16 of the Central Goods and Services Act, with effect from the 1st day of July, 2017, after sub-section(4), the following sub-sections shall be inserted, namely:- (5) Notwithstanding anything contained in sub- section(4), in respect of an Invoice or Debit note for supply of goods or services or both pertaining to the financial years, 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under Section 39 which is filed up to the thirtieth day of November, 2021. (6) xxxxxxxxxxxxx (i) xxxxxxxxxxxxxx (ii)xxxxxxxxxxxxxx ” 6. In view of the aforesaid amendment by inserting Section 16(5) to the CGST / KGST Act, the present petition deserves to be disposed of relegating the parties to the - 6 - NC: 2025:KHC:13386 WP No. 3345 of 2025 original authority to implement and give effect to the said provisions after providing sufficient and reasonable opportunity to the petitioner and hearing them and proceed further in accordance with law and by issuing certain directions in this regard. 7. In the result, I pass the following:- ORDER (i) Petition is hereby disposed of. (ii) The parties are relegated to the stage of show cause notice at Annexure-C dated 13.02.2020 issued by the respondent(s) and the respondents are directed to give effect to and implement the amended provisions contained in Section 118 of “The Finance (No.2) Act, 2024” relating to insertion of Section 16(5) to the CGST Act / KGST Act by providing sufficient and reasonable opportunity and hear the petitioner and proceed further in accordance with law within a period of one month from the date of receipt of a copy of this order. (iii) The impugned blocking of the Input Tax Credit (ITC) ledger of the petitioner vide Annexure-F dated 03.02.2020 is hereby quashed. (iv) The respondents are directed to unblock and release the credit balance of the petitioner in their ITC Ledger / Account, if not already released, immediately / forthwith upon receipt of a copy of this order without any delay. (v) All rival contentions on all other prayers sought for by the petitioner including the challenge to the statutory - 7 - NC: 2025:KHC:13386 WP No. 3345 of 2025 provisions are kept open and no opinion is expressed on the same. 4. In view of the aforesaid facts and circumstances and the judgment of this Court in M/s.Sadhana Enviro Engineering’s case supra, I am of the view that the present petition also deserves to be allowed and disposed of in terms of the said judgment. 5. In the result, I pass the following:- ORDER (i) Petition is hereby disposed of in terms of the judgment of this Court in the case of M/s.Sadhana Enviro Engineering Services vs. Joint Commissioner of Central Tax & others – W.P.No.6138/2020 dated 03.09.2024. (ii) The impugned Order at Annexure-G dated 05.04.2024 is hereby quashed. (iii) The parties are relegated to the stage of show cause notice dated 08.12.2023 issued by the respondent(s) and the respondents are directed to give effect to and implement the amended provisions contained in Section 118 of “The Finance (No.2) Act, 2024” relating to insertion of Section 16(5) to the CGST Act / KGST Act by providing sufficient and reasonable opportunity - 8 - NC: 2025:KHC:13386 WP No. 3345 of 2025 and hear the petitioner and proceed further in accordance with law within a period of one month from the date of receipt of a copy of this order. (iv) All rival contentions on all other prayers sought for by the petitioner including the challenge to the statutory provisions are kept open and no opinion is expressed on the same. Sd/- (S.R.KRISHNA KUMAR) JUDGE SV List No.: 1 Sl No.: 93